Whistler Blackcomb’s (TSX: WB, OTC: WSBHF) board of directors has agreed to a takeover proposal from Vail Resorts for a C$36 per share cash-and-stock deal. The bid represents a 43% premium to WB’s closing price prior to the announcement.

There are numerous hurdles that the transaction will have to clear, including approvals from WB shareholders, the British Columbia Supreme Court and approvals under the Investment Canada Act and the Competition Act. WB is also engaged in sensitive discussions with the Squamish and Lil’wat First Nations, on whose traditional lands the facilities are operated, for the extension of the master operating contracts and agreements to expand the facilities.

Whistler is a unique and world-famous ski facility and clearly a prized asset for Vail. However, the proposed price is above our fair-value estimate of C$26 and likely but not completely certain to proceed. We have therefore decided to sell the shares that we hold in the Dividend Champions Portfolio for a profit of 101% since first recommended a little more than a year ago. Sell Whistler Blackcomb.